The acquired claims are said to host a northern extension of Blackflake West’s ‘All Channel’ electromagnetic graphite target, which was discovered by Metals Creek Resources in March this year.

Xmet chairman and CEO Alexander Stewart said: "After reviewing the results from our recent VTEM survey announced September 29th 2014, we were pleasantly surprised at the size and conductivity response of this anomaly.

"The original All Channel response that we knew about when we optioned property, was only the western edge of what we have now discovered. Given the size of this new discovery, and the fact that we see some responses trending northward we have secured the abutting land to the north."

The company plans to conduct ground geophysical IP in the coming days, which will help it refine the target.

In May, Xmet signed a deal with Metals Creek to buy 60 % interest in the Feagan Lake project.

Under that deal, Xmet has an option to acquire 50% interest in the project by paying $20,000 and issuing up to 3,000,000 common shares. It should also spend $885,000 in exploration over a three year period.

For the additional 10% stake, the company will pay $100,000 and issue 1,500,000 common shares within 90 days after purchasing 50% interest as well as spend $1,000,000 for exploration.